How to Make Your Tax Preparation a Breeze

It’s tax time. That simple phrase can strike fear into the most stalwart of business owners. A somewhat irrational fear seems to grip even the most honest and forthright people when the idea sinks in that they are about to reveal all of their financial activities to Uncle Sam. Why is that? To make the panic even more ridiculous is the fact that tax time is not a surprise event. No, it comes around every year as regularly as Christmas. What makes this annual event such a stressed-induced nightmare for so many business owners? The answer is quite simple really: a lack of preparation. Most people find themselves in the unenviable position of not being ready for tax preparation. At the last minute, with the clock ticking inexorably toward the deadline, they throw their shoebox full of files at their accountant and beg for a miracle.

 

Tax time does not have to be such an ordeal. With a slight shift of perspective and a few adjustments in work habits, tax time can be nearly effortless and painless. From this point onward, try to have the attitude of finding ways to reduce needless stress. Stay ahead of the curve, and do not let the work pile up and get out of control. Busyness is the number one reason business owners get in such a bind over taxes. Claiming to be too busy to handle important tasks like getting organized, they usually are mowed down like the springtime weeds when the time comes to reconcile the books and present a record of their activities to the government.

 

Start now to work toward developing good habits. Make it a point to reconcile bank statements when they come in and keep up with W9 forms for contract employees. By doing these things a little at a time throughout the year, the big stressed-out all-night crying jags can possibly be avoided when it is time for the tax preparation to begin. Keeping up with these details may seem too time consuming at first, but devoting just thirty minutes per day to tidying up financial records and keeping things organized could make all the difference in the world.

 

Smart business owners typically build relationships with their tax preparation specialists. They do not typically wait until the last minute to dump a ton of tangled receipts and transaction logs on an already overworked individual. By staying in constant contact throughout the year, business owners may pick up valuable tips about law changes and information on how to simplify record keeping. The mindset of treating the accountant as a trusted adviser and business partner rather than merely a service provider can go a long way toward making tax preparation a smooth process.

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